Municipal Finance Administration - Exam Review Questions
With Complete Solutions
A bid opening may not take place on Correct Answers No
Mondays and no days after a holiday
A governing body may increase its appropriations cap to ______
by passing a cost of living adjustment ordinance. Correct
Answers 3.5%
A municipal budget constitutes two function of authority which
are Correct Answers The establishment of appropriations
necessary to meet expenditures and the authority to tax to
provide revenue
A municipality may alter a budget appropriation which is no
longer needed during its budget year with Correct Answers
Change in text and title resolution
A municipality that experiences cash flow problems may issue
Correct Answers Tax anticipation notes (TANS)
A supplemental debt statement must be filed with the municipal
clerk before the first reading of the bond ordinance, and filed
with the Division of Local Government Services as of the exact
date of the introduction of the ordinance. Correct Answers True
A tax lien sale held before the close of the budget year is known
as Correct Answers an accelerated lien sale
,Additions to the budget after adoption are generally referred to
as Correct Answers Chapter 159 amendments
Adoption of the Capital Budget where the cummulative cost of
such items exceeds Correct Answers $25,000 useful life of 5
years
Advisories from the Division of Local Government Services that
have the force of regulation are called Correct Answers Local
Finance Notices
All businesses must file a political contribution disclosure
statement, for 12 months prior to the deadline for filing, Election
Law Enforcement Commission (ELEC) if they have received
public contracts, in the aggregate, in excess of Correct Answers
$50,000
All open ended and professional service contract must contain
Correct Answers A not to exceed amount
At the end of the second budget year, any remaining
uncommitted appropriation reserves are Correct Answers
Lapsed and returned to the fund balance through journal entries
Auditors of financial statements are primarily retained to Correct
Answers offer and opinion on the reasonableness of an entity's
financial reports
Bond Anticipation Notes may be issued for a period not
exceeding Correct Answers One year
, Bond Anticipation Notes may be issued for a period not
exceeding Correct Answers One year
Bond ordinances must be published how many days prior to the
public hearing? Correct Answers 20 days
Bonds may be sold at private sale except when the total amount
of bonds is more than Correct Answers $1,000,000
Bonds paid from a municipality's state aid are known as Correct
Answers Qualified bonds
Change orders in construction contracts cannot exceed
_________ without further action of the governing body Correct
Answers 20%
Contingent in a municipal budget is limited to ________% of
the total operations Correct Answers 3
Contracts must be awarded to the lowest bidders, or all bids
rejected, by resolution of the governing body with in ________
days of the receipt of bids Correct Answers 60
Current Fund appropriations for accumulated absence liabilities
must be Correct Answers All of the below:
-Deposited in a dedicated trust fund
-Cannot be used for any other purpose unless first approved by
the Local Finance Board
-Must not exceed the value of the total accumulated absences,
less any amount reserve from prior years appropriations and
held in the trust fund
With Complete Solutions
A bid opening may not take place on Correct Answers No
Mondays and no days after a holiday
A governing body may increase its appropriations cap to ______
by passing a cost of living adjustment ordinance. Correct
Answers 3.5%
A municipal budget constitutes two function of authority which
are Correct Answers The establishment of appropriations
necessary to meet expenditures and the authority to tax to
provide revenue
A municipality may alter a budget appropriation which is no
longer needed during its budget year with Correct Answers
Change in text and title resolution
A municipality that experiences cash flow problems may issue
Correct Answers Tax anticipation notes (TANS)
A supplemental debt statement must be filed with the municipal
clerk before the first reading of the bond ordinance, and filed
with the Division of Local Government Services as of the exact
date of the introduction of the ordinance. Correct Answers True
A tax lien sale held before the close of the budget year is known
as Correct Answers an accelerated lien sale
,Additions to the budget after adoption are generally referred to
as Correct Answers Chapter 159 amendments
Adoption of the Capital Budget where the cummulative cost of
such items exceeds Correct Answers $25,000 useful life of 5
years
Advisories from the Division of Local Government Services that
have the force of regulation are called Correct Answers Local
Finance Notices
All businesses must file a political contribution disclosure
statement, for 12 months prior to the deadline for filing, Election
Law Enforcement Commission (ELEC) if they have received
public contracts, in the aggregate, in excess of Correct Answers
$50,000
All open ended and professional service contract must contain
Correct Answers A not to exceed amount
At the end of the second budget year, any remaining
uncommitted appropriation reserves are Correct Answers
Lapsed and returned to the fund balance through journal entries
Auditors of financial statements are primarily retained to Correct
Answers offer and opinion on the reasonableness of an entity's
financial reports
Bond Anticipation Notes may be issued for a period not
exceeding Correct Answers One year
, Bond Anticipation Notes may be issued for a period not
exceeding Correct Answers One year
Bond ordinances must be published how many days prior to the
public hearing? Correct Answers 20 days
Bonds may be sold at private sale except when the total amount
of bonds is more than Correct Answers $1,000,000
Bonds paid from a municipality's state aid are known as Correct
Answers Qualified bonds
Change orders in construction contracts cannot exceed
_________ without further action of the governing body Correct
Answers 20%
Contingent in a municipal budget is limited to ________% of
the total operations Correct Answers 3
Contracts must be awarded to the lowest bidders, or all bids
rejected, by resolution of the governing body with in ________
days of the receipt of bids Correct Answers 60
Current Fund appropriations for accumulated absence liabilities
must be Correct Answers All of the below:
-Deposited in a dedicated trust fund
-Cannot be used for any other purpose unless first approved by
the Local Finance Board
-Must not exceed the value of the total accumulated absences,
less any amount reserve from prior years appropriations and
held in the trust fund
